Re:A little secret that will make the world fall apart
by bokonist on Thursday January 29, 2009 @02:24AM
(#455994)
Currencies do not need to be backed by anything. They are simply intermediary goods, valuable because of a coordination game. There is no "collecting in mass". The dollar is the final good. The U.S. has no debts outstanding in anything other than dollars ( which is quite a nice situation to be in).
[ Parent
| on HN ]
Re:A little secret that will make the world fall apart
by mjnaus on Thursday January 29, 2009 @02:37AM
(#456007)
In my world, goods and services I purchase are the final goods, not the money I need to purchase them.
About "collecting en masse", I guess time will tell. You might be right, for those holding large amounts of dollars (China for example) a "run on the US government" would be a bad thing, they're better off unloading their less valuable currency gradually and exchanging them for something with intrinsic value such as gold and silver. And in the mean time, the dollar will keep on loosing it's value.